Hitchner on how to reconcile Ibbotson's 6.5% with D&P's 4.5%

One question at the cost of capital session led by Jim Hitcher down in Miami; how do you justify choosing Ibbotson over D&P or vice verse?

Jim's answer was pragmatic and thoughtful: "If you average two numbers that are far apart, the only thing you know is that you're wrong. But, Ibbotson and Duff & Phelps are pretty close, so I feel comfortable averaging them. I think most appraisers can work with that."